Friday, May 18, 2007

Brand Exposure to Climate Change

The UK's Carbon Trust took a look at company and brand exposure in a report aptly entitled Is your brand at risk from climate change? The report looked at various business sectors and analyzed different criteria, including brand value, direct and indirect operational exposure, and ability to differentiate products on the issue of climate change.

The report is not too surprising: brands are exposed to an increase in risk from climate change. What is surprising is that the food industry is more exposed than the oil and gas industry. The food and beverage sector has the second highest risk percentage, and the largest financial exposure.

The attached graphic is from the report and shows that while the total market value for food and beverages is £66.5 billion (English pounds), the sector has a risk exposure of 10% with a value of £6.6 billion. This financial exposure is higher than Airlines, Oil and Gas, Banking, Telecomunications, and Food Retail.

(Click on image for larger picture)
(FTSE refers to the FTSE All-Share Index, an index representing 98-99% of UK's financial market capitalization.)

Source: Carbon Trust, "Is your brand at risk from climate change?", March 2005,